Home > Our Publications > Travel Australia and New Zealand > Feburary 2004

THE AUSTRALIAN and New Zealand dollar may be high against the pound, the euro and the United States dollar but these two South Pacific countries are still far cheaper than London or the European capitals and offer excellent value for money for both tourists and visiting businessmen.
Basically, you can generally consider paying around $1 instead of £1 for virtually anything in both countries.
Hotel beds are far cheaper in all parts of Australia and New Zealand, while some hostels in Australia are almost giving away their beds, especially in Cairns and parts of Sydney.
Tour operators have held their prices, due to a slump in general bookings over the past 12 months, while you can certainly get a cheaper holiday in such exotic destinations as Fiji, Vanuatu and beautiful Bali.
If you want to hop across the Tasman (either way) air fares have crashed recently - thanks to major competition between Qantas, Air New Zealand (and its subsidiary, Freedom Air), Pacific Blue (an off-shoot of Virgin Blue) and fast-growing Emirates.
International air fares may be starting to go up but domestic air fares in Australia have plunged since Sir Richard Branson started his cut-price airline Virgin Blue in Australia.
This now operates between all capital cities and most leading tourist spots and has brought down many of the domestic fares offered by Qantas.
In fact, Qantas is starting its own cut-price domestic airline shortly while giant travel retailer, Flight Centre is offering holiday charter flights to leading tourist destinations in Australia - something that has only previously been done on an ad-hoc basis.
All tourist infrastructure in both Australia and New Zealand is top quality (apart from some backpacker hostels), from the smaller tour operators to family-run motels (they are popular and can be found virtually everywhere in Australia) and five star hotels, which certainly do not charge five star London prices. A big plus with virtually all motels and hotels - there is tea and coffee making (plus the bar fridge) in all rooms. A real bonus.
So if you don't want to spend too much but still have a great holiday, among friendly people, where you can certainly drink the water, visit Australia and New Zealand.